Dynegy (NYSE: DYN) is one of 85 publicly-traded companies in the “Electric Utilities” industry, but how does it compare to its competitors? We will compare Dynegy to similar companies based on the strength of its dividends, institutional ownership, valuation, profitability, risk, analyst recommendations and earnings.

Volatility and Risk

Dynegy has a beta of 1.86, meaning that its share price is 86% more volatile than the S&P 500. Comparatively, Dynegy’s competitors have a beta of 0.70, meaning that their average share price is 30% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Dynegy and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dynegy 1 2 3 0 2.33
Dynegy Competitors 513 2898 2327 41 2.33

Dynegy presently has a consensus target price of $11.80, indicating a potential upside of 27.43%. As a group, “Electric Utilities” companies have a potential upside of 6.22%. Given Dynegy’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Dynegy is more favorable than its competitors.

Valuation & Earnings

This table compares Dynegy and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Dynegy $4.70 billion $905.00 million -6.43
Dynegy Competitors $7.19 billion $2.12 billion 30.84

Dynegy’s competitors have higher revenue and earnings than Dynegy. Dynegy is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Dynegy and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dynegy -2.72% -12.97% -1.80%
Dynegy Competitors -10.74% 3.32% 0.51%

Insider and Institutional Ownership

65.5% of shares of all “Electric Utilities” companies are held by institutional investors. 1.8% of Dynegy shares are held by company insiders. Comparatively, 2.7% of shares of all “Electric Utilities” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Dynegy competitors beat Dynegy on 7 of the 12 factors compared.

Dynegy Company Profile

Dynegy Inc. (Dynegy) is a holding company and conducts the business operations through its subsidiaries. The primary business of Dynegy is the production and sale of electric energy, capacity and ancillary services from the fleet of 18 operating power plants in six states totaling approximately 12,300 megawatt (MW) of generating capacity. Dynegy sells electric energy, capacity and ancillary services on a wholesale basis from its power generation facilities. Its customers include Regional Transmission Organization (RTOs) and Independent System Operators (ISOs), integrated utilities, municipalities, electric cooperatives, transmission and distribution utilities, industrial customers, power marketers, financial participants, such as banks and hedge funds, other power generators and commercial end-users. It has three segments: Midwest segment (GEN-MW), West segment (GEN-WE) and Northeast segment (GEN-NE). Its wholly owned subsidiary is Dynegy Holdings Inc. (DHI).

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